Question
Internal Rate of Return Analysis Refer to data in E12-6A. What is the internal rate of return for Proposal X? For Proposal Y? Cooper Corporation
Internal Rate of Return Analysis Refer to data in E12-6A. What is the internal rate of return for Proposal X? For Proposal Y?
Cooper Corporation must evaluate two capital expenditure proposals. Coopers hurdle rate is 10%.
Data for the two proposals follow. Proposal X Proposal Y
Required investment............................................ $120,000 $120,000
Annual after-tax cash inflows ..................................... 24,000
After-tax cash inflows at the end of years 3, 6, 9, and 12................ 72,000
Life of project ................................................. 12 years 12 years
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